BackStrides to up FDA approved capacity 10 times by Dec
Strides to up FDA approved capacity 10 times by Dec
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Mumbai: Drugmaker Strides Arcolab’s US FDA approved capacity for speciality product liquid vials is set to rise 10 times once approvals for two new plants come through by December, its chief said late on Thursday.
“We have spent about Rs300 crore (Rs3 billion) to set up these two plants," group chief executive officer Arun Kumar told Reuters in an interview over the telephone.
As of now, the company has annual capacity of 11 million single dose units (SDUs) for liquid vials in Bangalore that would leapfrog to 97 SDUs after FDA approvals come through by the end of this year, he said.
Strides has also earmarked a capex of about Rs1 billion for the year ending December 2010, he said.
“We have spent some 600 crore (Rs6 billion) over last year or so on various projects,hence, this year, there is no major capex lined up."
Easy on acquisitions
The company saw continued growth momentum driven by speciality and pharma businesses backed by strong licensing income, he said in a statement.
In March, Strides acquired a penems and penicillin factory in Brazil from South Africa’s Aspen Pharmacare and also raised stake to 100% from earlier 50% in two oncology joint ventures it had with Aspen.
During the quarter, the company also announced, it was in discussions to increase its stake in Australia’s Ascent Pharmahealth Ltd to 100% from present 57%.
“We have submitted a proposal to Ascent Pharma and a decision on this is awaited," Kumar said. It would have to pay about A$40 million to raise stake in the Australian drug maker, he added.
However, there are no more acquisition plans for now.
“I don’t think we have the resources and the bandwidth to announce more deals as of today."
Strides, which posted Ebitda margin of 23% during the Jan-March quarter, expects to maintain it for the next quarter too, comfortably meeting its full year guidance of 21%, Kumar stated.
Strides on Thursday reported a net profit of Rs398.3 million on net sales of Rs3.73 billion for the quarter ended 31 March.
At 1:52pm, shares of Strides Arcolab were trading at Rs354.30, down 0.58% in a Mumbai market that was up 0.44%.
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